It's hosting the 2010 World cup too, so it can't be that bad can it?!
I'm not disputing anyone's experiences and don't know much about SA myself, but I do have a few friends who travel there or have lived there.
Sounds to me like it has it's good and bad, like every other country. The good bits sound awesome, and the bad bits that have reached the general pubic domain do sound pretty scary to me, but my guess would be, if your careful and aren't looking for trouble then you'd have a great time!
It's a pity the entry list is so short though...probably a combination of things...money, this "alledged" reputation, etc, etc. But a little sad if the official world body for RC racing has placed the event there and the manufacturers and racers don't feel they can support it, afterall it's these events and this exposure that help to shape and change the general publics feelings about places.
The host's are obviously putting a lot of time and effort in, firstly to get the event in the first place and secondly to actually hold it, like all venues do. It's a shame they may not be rewarded with the event that we'd all like to attend or here about, but if it doesn't live up to everyone's expectation it won't be their fault so they should stand proud that they've put the effort in
Good luck with it I say!